The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method

by Jeremy Du Plessis

Point and Figure charts are one of the great secrets of the Technical Analysis world. Highly sophisticated and with a thoroughbred pedigree, they can, however, be overlooked by traders today. Jeremy du Plessis - one of the foremost Point and Figure experts in the world - returns with a fully updated second edition of this definitive guide in an effort to redress this imbalance.
This second edition, with an extensive revision to the text and introduction of brand new techniques, demystifies the world of Point and Figure charting. It includes a detailed explanation of the history and development of the technique from its invention to the modern day, and covers the makeup of the chart patterns, why they are created, and how to interpret them.
Throughout, readers are encouraged to understand Point and Figure charts from first principles, rather than just remember the names of a series of patterns. It is the first major work for 50 years to discuss in depth the original 1-box reversal method of Point and Figure charting and contrast it with the more popular 3-box reversal method. Further, the explanation of how to use Point and Figure charts to project targets and calculate risk-reward ratios is the most comprehensive ever seen.
Also featured in the second edition
- A step-by-step analysis of the FTSE 100 Index using the 3-box method, as well as the NASDAQ Composite Index, using the 1-box method
- A detailed discussion of optimising techniques
- An in-depth chapter on Analysing Point and Figure charts, extensively rewritten from the first edition
- A new explanation of how Point and Figure parameters are chosen and the implications of choosing them
- Two new Point and Figure construction methods never seen before
- Point and Figure's contribution to market breadth, with a look at bullish percent and two brand new indicators
- Full discussion of Point and Figure gaps and how they provide valuable information about the chart
- Lesser known, more advanced techniques such as the use of moving averages, parabolic SAR and Bollinger Bands on Point and Figure charts
- Price and volume activity histograms and how they provide information about support and resistance
All this is illustrated with numerous colour charts and observations from years of trading experience.
According to du Plessis, Point and Figure charts are the 'voice of the market'. This book helps you listen to, and understand, that voice.
Part of the Market Technicians Association (MTA) Required Reading list.

540 pages, Kindle Edition

First published October 3, 2012

Reviews

[Chandru · Rating 5 out of 5]

Must read for point and figure and trend following enthusiasts

[Ulf Preisler · Rating 5 out of 5]

The best treatment of P&F bar none

If you are interested in Technical Analysis, and you want someone to introduce you to the ‘esoteric’ discipline (at least in todays markets) of P&F charting and trading, this is the book to get.
The author is clear, precise, and honest to a fault, showing not just the ‘good stuff’, but also where the flaws of the methodology are.
This is one of the best books I’ve ever read, and I’m not restricting myself to financial topics. I mean one of the best ever. Period. Buy it.